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Alpha Manufacturing Has the Following Financial Information for the Current

Question 43

Multiple Choice

Alpha Manufacturing has the following financial information for the current year and projected for next year. Calculate its projected free cash flow to equity.  Current  year  Prajected  EBIT 1,5001,800 Operating a5sets 3,0003,400 Operating liabilities 200220 Tetal debt 1,5001,800 Interest rate an debt 6%6% Trax rate 25%25%\begin{array} { l r r } & { \text { Current } } \\& \text { year } & \text { Prajected } \\\text { EBIT } & 1,500 & 1,800 \\\text { Operating a5sets } & 3,000 & 3,400 \\\text { Operating liabilities } & 200 & 220 \\\text { Tetal debt } & 1,500 & 1,800 \\\text { Interest rate an debt } & 6 \% & 6 \% \\\text { Trax rate } & 25 \% & 25 \%\end{array}
 


A) $893
B) $983
C) $1,081
D) $1,189
E) $1,308

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